Checks of Self Employed Income Support Scheme Claims by HMRC

Checks of Self Employed Income Support Scheme Claims by HMRC

We have recently been made aware that HMRC are contacting taxpayers who they believe may have incorrectly claimed grants via the Self Employed Income Support Scheme (SEISS) as they have stopped trading.  HMRC appear to be doing this by email from the following email address:-

self.employed.income.support.scheme@notifications.service.gov.uk

Please click on the following link to read an example of this type of email from HMRC:-

Example of HMRC email

Anyone who receives such an email from HMRC should not ignore it. Otherwise they risk HMRC opening an enquiry into their tax affairs and being charged penalties.  Please forward the email to us immediately for advice if you are a client or if you would like our assistance to deal with it.

HMRC suggest that that the taxpayer should review their SEISS claim to ensure that they believe that it is correct.  They give them the option of taking one of two courses of action:-

Action 1

If the taxpayer believes that they have wrongly claimed the grant they need to:-

• Go to gov.uk and search ‘Stopped trading SEISS’.
• Complete the online form using the government gateway ID that was used to make the claim
• They will not be asked to pay the grant back at this point. HMRC will contact them to let them know how much and how to pay.

Action 2

If the taxpayer believes that their SEISS grant claim was correct, they must:

• Make sure they are registered for Self-Assessment.
• File their 2021 tax return by the due date and include the SEISS grant as income.
• Go to gov.uk and search ‘Stopped trading SEISS’.
• Complete the on-line form using the government gateway ID that was used to make the claim
• HMRC advise that at this stage there is no need to provide evidence that the taxpayer is still trading, but that they may ask for this at a later date.

If the grant was received before 22 July 2020, the deadline for completing the online form is 20 November 2020.

If the grant was received after 22 July 2020, the deadline for completing the online form will be 90 days after the date of receipt of the grant.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Carlos Magno on Unsplash